Wildfire risk assessments can be a mystery for many Washington homeowners. Senator Judy Warnick wants to change that. Today, the Senate passed her proposal to demystify the complex risk models used by insurance companies. The bill cleared the chamber with an overwhelming 48-1 vote.
The proposal was prompted by a growing crisis in Central and Eastern Washington. Currently, many homeowners in wildfire-prone areas are left in the dark. Their insurance is canceled, not renewed, or their future premiums skyrocket based on a “wildfire risk score” they never see and cannot challenge.
During a large community gathering in Kittitas County last fall, homeowners expressed frustration over this lack of communication and demanded more clarity about how their properties were being assessed for wildfire risk.
To address their concerns, Warnick’s measure would require insurance companies to disclose the specific factors and data points that adversely impact a homeowner’s wildfire risk score.
“Last fall, I met with many constituents who are struggling to keep their homes protected as insurance costs soar or they lose coverage entirely,” said Warnick, R-Moses Lake. “This bill is a measured approach to give homeowners more control. By requiring companies to disclose what is driving these risk scores, we are empowering Washingtonians.
“You can’t fix a problem you don’t understand. If a homeowner knows exactly why their score is high, they can begin to take action to mitigate those risks.”
If passed into law, Senate Bill 5928 would require that companies provide a summary explanation of how the wildfire risk model is used in underwriting while also carefully balancing the need for corporate privacy.
“We’ve worked hard to bring the right people to the table, including the Office of the Insurance Commissioner and industry stakeholders, to ensure we are using the most accurate information possible,” Warnick added. “We don’t want any unnecessary or burdensome regulations; we just want transparency.”
Having passed the Senate, the bill now moves to the House of Representatives for that chamber’s consideration.